The profitability of the venture may be preserved by:
• Entering into agreement to receive cash flows in terms of home currency only. If the local currency is weaker compared to the home currency, this can be done negotiating for a 5 year loan of 20 million currency units.
• Repay the loan in 27M local currency units so that long term assets (new factory) would be matched with long term liability (loan)
• If the firm has 20M currency units, it can be invested in local or home country where local currency is expected to appreciate.